Presented by

Kathleen E. Pavelka, CFRE, President, Telecomp, Inc.

James B. Malezi, Annual Fund Officer, Washington & Jefferson College

CASE II District Conference

March xx, 2007

CREATING AN ALUMNI GIVING PLAN

THAT WORKS

CREATING AN ALUMNI GIVING PLAN

THAT WORKS

I. Start With Your CalendarI. Start With Your Calendar

• Schedule solicitations to leverage your events

• Schedule solicitations to leverage your publications

II. Determine SegmentationII. Determine Segmentation

Group prospects by

their relationship to you• allows you to speak to them

uniquely• allows you to plan solicitation

frequency and timing

Segmentation versus Fragmentation Segment should be:

– meaningful to the potential donor

– realistic in size for the solicitation method and timing

– allow you to recognize their relationship

– generate the appropriate results for the investment

– have a specific objective

II. Determine Segmentation II. Determine Segmentation

Segmentation versus Tracking Codes • allows you to track smaller

groups within your segments (or larger)

Segmentation versus Restricted Giving• allows you to appeal to their

interest, but does not mean that you have to restrict their gift to their interest -- two separate and distinct issues

Update Segmentation Annually

• based on their changing relationship with you

II. Determine SegmentationII. Determine SegmentationCommon Segment: “Donors”

Concern: Does not distinguish based on recency or consistency of gift. Does not distinguish between level of gift.

Questions: Are some donors more important than others? Do you have a different objective for different donors?

Would your solicitation method vary for different donors?

Suggested Segmentation: Additional Considerations:Leadership Restricted versus Unrestricted DonorsPotential Leadership Special Event DonorsLybunts (Prior Year Donors) Special Appeal DonorsLapsed ( 2 - 5 years out) Sponsors (walks, runs, etc.)Sybunts or Long Lapsed Donors Memorial Donors

II. Determine SegmentationII. Determine Segmentation

Sample Donor Objectives by Segment

Leadership: Increased giving

Potential Leadership: Increase gift to Leadership Level

Renewing Donors: Increase gift by 30% or more

Lapsed Donors: Reactivate giving; increasing may be secondary

Long Lapsed/

Sybunts: Reactivate giving

Common Segment: “Non-Donors”

Concern: Since it groups all non-donors together, does not allow you to recognize their relationship to you (other than they’re not giving)

Does not allow variation in Case for Support, etc.

Questions: What relationship does this non-donor have with you? Are some non-donors more important than others?

Suggested Segmentation:Reunion Fraternity/Sorority “Engaged” Young Alumni

Degree versus No Degree CampusType of Degree Major (undergraduate versus graduate) Other AffiliationEvent Attendees (athletes, for example)

II. Determine SegmentationII. Determine Segmentation

III. Solicitation MethodIII. Solicitation Method

• Three Primary Methods:– Face-to-Face

» Volunteer» Staff

– Telephone» Students (Paid or Volunteer)» Resource Partner (On v Off Campus)

– Mail» Personalized» Non-Personalized

– Other Methods:» Special Events» E-mail

III. Solicitation Method III. Solicitation Method

• Determine which method(s) would be most effective for each segment, and the priority order

• BE REALISTIC– While personal solicitation might be most effective, it is

very limited. Make sure you are realistic in the number of personal solicitations your institution is truly capable of making

III. Solicitation MethodIII. Solicitation Method

Make sure the investment is appropriate to the expected outcome

IV. Database AccuracyIV. Database Accuracy

The U.S. Post Office estimates that 20% of the population moves each year.

• Regular updating is a MUST– NCOA (inexpensive and easy)

– Address Correction Requested on all mailings (including alumni magazines and other general publications)

– First Class mail, where appropriate– Telephone Number Research

(computer matching and directory assistance)

– Advanced search based on SSN and last known address

IV. Database AccuracyIV. Database Accuracy

Investing in alumni with bad addresses or phone numbers wastes precious resources

V. Solicitation OpportunitiesV. Solicitation Opportunities

• Determine the number of opportunities for giving you will provide by segment

• Distinguish between first and second gifts

• General Rules of Thumb:– Solicit as long as each successive effort is cost effective

– In direct mail, expect the successive effort to cut in half

Suggested Opportunities per year:Leadership 3-5 Potential Leadership 5-8Renewals 5-8 Lapsed Donors 3-5Long-Lapsed / Non-Donors 1-2 Second Gift Appeal 1-2

V. Solicitation OpportunitiesV. Solicitation Opportunities

The alumni called in the Spring were a subset of those called in the Fall

Fall

Telephone

Solicitation

Spring

Telephone

Solicitation

FY ’05 Donors $100 - $999 65% 42%

FY ’05 Donors $1 - $99 42% 34%

Results of successive solicitations in a Telephone Outreach Program

Fairleigh Dickinson University 2005-06 Annual Fund

V. Solicitation OpportunitiesV. Solicitation Opportunities

The alumni called in the Spring were a subset of those called in the Fall

Fall

Telephone

Solicitation

Spring

Telephone

Solicitation

FY ’05 Donors 74% 55%

Results of successive solicitations in a Telephone Outreach Program

Pace University 2005-06 Annual Fund

MEASUREEVERYTHING

MEASUREEVERYTHING

VI. Measuring SuccessVI. Measuring Success

• Set Overall Goals– Total Gift Income– Total Number of Donors– Renewal Rate– Increased Giving from

Renewals– Retrieval Rate (Lapsed

Donors)– Number of New Donors– Average Gift

• Set a specific target for each solicitation, by segment– Use historic performance– Use industry benchmarks

• Develop tracking system to measure your results against your expectations

• Adjust solicitation method and number of opportunities as needed

VII. Set the CalendarVII. Set the Calendar

• Based on the number and method of solicitations, set your calendar– Calendar year-end solicitation a MUST– Fiscal year-end solicitation a MUST (if different)

• Leverage special events, institutional activities and publications!– Homecoming, reunion, graduation, parents weekend, the

start and end of classes each semester– Alumni magazine, class notes/newsletters– Athletic or other big “public” events

VIII. Set the StrategyVIII. Set the Strategy

• Determine your basic strategy for this year’s Annual Fund (Case for Support; what’s our story this year)

• Determine variations on the basic strategy for successive solicitations

(Albert Einstein said: Insanity is doing the same thing and expecting a different outcome)

• Tie in with other activities, publications, etc.

IX. Thank You Method and Frequency

IX. Thank You Method and Frequency

• Determine method(s) that are appropriate– Handwritten note - Personal letter– Personalized form letter - Telephone Call– Receipt (not desired method for any donor)– E-mail - Other (flowers, candy)

• Determine who should thank the donor

• Determine how many times you wish to thank the donor (never worry that it is too many)

• Formal Recognition (Recognition v. Benefits)

X. Putting It All TogetherX. Putting It All Together

• Create a Master Plan– Include Key Dates– Make it a Priority– Stick to it like GLUE– Adjust as necessary for performance reasons only!

Watch your program take off!!!!!!